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Should you sell in 2016?
Auckland real estate sales results for March have just been released and they suggest that the local property market is on the increase again, with the median Auckland property price up $100,000 year-on-year and sales volume up 67% over February 2016 (Real Estate Institute of New Zealand figures).
Similarly, the latest Trade Me Property Price data shows a 2.1% monthly increase in its Auckland Property Price Index for March 2016.
Yet it was just a short time ago that there was plenty of talk about a slowdown in the Auckland real estate market, as a result of the various measures which were implemented by the NZ Government, taking effect in October 2015, in a deliberate effort to dampen price inflation in the market, including:
- New Loan to Value Ratio Restrictions which require higher deposits for Auckland properties
- Non-resident property buyers are now required to register with the IRD and have a New Zealand bank account
- New Zealanders buying and selling any property other than their main home must also provide a New Zealand IRD number
- A new “bright line” test has been introduced to tax capital gains from residential property sold within two years of purchase
So how effective have the Government measures been at reducing demand in the Auckland real estate market?
Do the March property sales figures represent a resumption of growth trends – or are they simply indicative of pent-up demand following the traditional December/January slowdown?
More importantly, if you’re considering selling your Auckland property, is this a good time to do so?
DOWNLOAD OUR FREE REPORT
Grab a copy of our free report on the 2016 Outlook for the Auckland Property Market.
In this report, we examine the underlying factors driving the Auckland real estate marketplace and consider the implications for those with property to sell.
We also review the impact of the new NZ Government measures and what they have meant for property sellers.